Question 1

As security for its operating line of credit,EcoDesign Builders Inc.has given an assignment of rents for two of its apartment blocks to ImaBigBank.Why is the bank's registration of the assignment of rents considered economical?

Accepted Answer

A)   It protects creditors whether the arrangement is contractual or not.
B)   The law requires registration of property held in the possession of another.
C)   It provides a shield for the creditor's rights to the pledged property.
D)   The bank has a lack of intention to return possession to the owner.E) B) and D)
F) A) and D)

Question 2

Remmie has leased scaffolding,to be used in his home stuccoing business,for five months from the local rent-all store.Remmie's possession of the scaffolding during the five-month period will be subject to any limitations contained in the lease agreement for the bailed property.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a valid criticism of a three-party financing lease arrangement?

Accepted Answer

A)   It shields the financier from normal lessor's obligations relating to the property.
B)   It imposes a high level of accountability for the property on the dealer.
C)   It imposes a high level of accountability on the financier.
D)   The property must be purchased outright at the end of the lease.E) All of the above
F) B) and C)

Question 4

What is it that most often drives the decision to create a temporary split of ownership and possession with respect to personal property?

Accepted Answer

A)   Both parties have a right to be compensated in any event.
B)   The arrangement meets the business needs of both parties.
C)   Both parties will have to bear a proportionate risk of a loss.
D)   The owner of the property bears ultimate responsibility.E) A) and D)
F) B) and D)

Question 5

In law,intellectual types of property are known as choses in action.

Accepted Answer

A) True 
 B)False

Question 6

Because Remmie's stuccoing business is experiencing unusual demand for its services,Remmie has decided to lease an additional truck and pressure washer as opposed to having the business purchase them outright at this time.The lease for the pressure washer is two months and would typically be described as an operating lease.

Accepted Answer

A) True 
 B)False

Question 7

A warehouseman's general responsibility toward its customers' property is to treat it as a skilled storekeeper would deal with its own property,which imposes a standard of reasonableness encompassing responsibility for most foreseeable risks.

Accepted Answer

A) True 
 B)False

Question 8

A higher expectation placed on a business offering a specific type of bailment is typically reflective of which of the following?

Accepted Answer

A)   special circumstances in the transaction
B)   the expertise of the business offering bailment for reward
C)   the limits on liability placed by the business offering bailment
D)   specific nature and value of the propertyE) C) and D)
F) B) and D)

Question 9

Ross sold his house and went travelling for two months.While he was away,he placed his furniture and other belongings in storage with Kitt's Storage Inc.In these circumstances,Ross is a bailee and Kitt's is a bailor.

Accepted Answer

A) True 
 B)False

Question 10

The requirement that a business offering bailment for value appropriately store perishable items placed in its possession is reflective of which of the following?

Accepted Answer

A)   special terms limiting liability set out in the parties' contract
B)   standard of care based on who benefits from the bailment
C)   special regulations that set out the standard of care
D)   standard of care based on the nature of the propertyE) B) and C)
F) A) and D)

Question 11

Which of the following denotes the most common cause for a bailor incurring liability with respect to goods provided under a contractual bailment?

Accepted Answer

A)   breach of bailor's warranty to provide a bailed chattel fit for its intended use
B)   the injury of a bailor while using or operating a bailed chattel
C)   breach of the bailor's duty of care regarding provision of adequate instruction for use
D)   the injury of a bailee's employee while using or operating a bailed chattelE) None of the above
F) A) and C)

Question 12

Which of the following distinguishes a commercial bailment contract from a consumer bailment contract?

Accepted Answer

A)   the limitation of standard forms to consumer contracts
B)   seriousness of defect affecting formation of a contract
C)   the court's inclination to apply differing standards to each
D)   seriousness of defect preventing performance of a contractE) C) and D)
F) A) and B)

Question 13

Identify the elements that are applied to determine the liability of bailees.

Accepted Answer

Following are the elements that are appl...

Question 14

The value of the consideration paid to keep a costly but very adequate policy in good standing will most likely provide strong support for which of the following?

Accepted Answer

A)   failure to protect the creditor's rights to the pledged property
B)   the right to be compensated for occurrence of an insured event
C)   entitlement based on strict use and simple registration of the policy
D)   the courts' need to balance value of tangible and intangible propertyE) A) and B)
F) A) and C)

Question 15

WeMove4U Inc.is a transport company that operates in Alberta and Saskatchewan.The company has recently adopted a new standard charge agreement that severely limits its liability in the event of mishap with bailed property.By pointing out this clause to its customers,WeMove4U is shifting the burden for damage or loss to the bailor,who should purchase adequate insurance coverage.

Accepted Answer

A) True 
 B)False

Question 16

Marcella delivered her suits to the drycleaners and arranged for them to be available for pick-up three days later.In this bailment for value,Marcella is a bailor and the drycleaner is a bailee.

Accepted Answer

A) True 
 B)False

Question 17

When a business entrusts bailed goods to an employee,which of the following is the most relevant factor flowing from the pilfering of those goods by that employee?

Accepted Answer

A)   The employer is subject to vicarious liability.
B)   The employer is expected to take greater care than an ordinary person.
C)   The employer's standard of care is higher for more valuable property.
D)   The employer is subject to personal liability.E) None of the above
F) B) and C)

Question 18

Intangible property is comprised of personal property,the value of which come from its physical form.

Accepted Answer

A) True 
 B)False

Question 19

The burden placed on a common carrier to care for the goods of the bailor is determined by the concept of benefit of the relationship.If the bailment benefits the bailor exclusively,the common carrier is required to exercise slight care and is liable only for gross neglect.

Accepted Answer

A) True 
 B)False

Question 20

What is the named used to describe the individual who has the right to enforce a lien over property until such time as storage fees have been paid?

Accepted Answer

A)   warehouseman
B)   financier
C)   storagekeeper
D)   skilled storagekeeperE) All of the above
F) A) and C)

Exam 17: Personal Property

The burden placed on a common carrier to care for the goods of the bailor is determined by the concept of benefit of the relationship.If the bailment benefits the bailor exclusively,the common carrier is required to exercise slight care and is liable only for gross neglect.

Correct Answer
verified

As security for its operating line of credit,EcoDesign Builders Inc.has given an assignment of rents for two of its apartment blocks to ImaBigBank.Why is the bank's registration of the assignment of rents considered economical?

Correct Answer
verified

Identify the elements that are applied to determine the liability of bailees.

Correct Answer
verified
Following are the elements that are appl...
View Answer

In law,intellectual types of property are known as choses in action.

Correct Answer
verified

The value of the consideration paid to keep a costly but very adequate policy in good standing will most likely provide strong support for which of the following?

Correct Answer
verified

Which of the following denotes the most common cause for a bailor incurring liability with respect to goods provided under a contractual bailment?

Correct Answer
verified

Correct Answer
verified

Which of the following distinguishes a commercial bailment contract from a consumer bailment contract?

Correct Answer
verified

Marcella delivered her suits to the drycleaners and arranged for them to be available for pick-up three days later.In this bailment for value,Marcella is a bailor and the drycleaner is a bailee.

Correct Answer
verified

Ross sold his house and went travelling for two months.While he was away,he placed his furniture and other belongings in storage with Kitt's Storage Inc.In these circumstances,Ross is a bailee and Kitt's is a bailor.

Correct Answer
verified

Correct Answer
verified

A higher expectation placed on a business offering a specific type of bailment is typically reflective of which of the following?

Correct Answer
verified

What is it that most often drives the decision to create a temporary split of ownership and possession with respect to personal property?

Correct Answer
verified

Which of the following is a valid criticism of a three-party financing lease arrangement?

Correct Answer
verified

When a business entrusts bailed goods to an employee,which of the following is the most relevant factor flowing from the pilfering of those goods by that employee?

Correct Answer
verified

Intangible property is comprised of personal property,the value of which come from its physical form.

Correct Answer
verified

Remmie has leased scaffolding,to be used in his home stuccoing business,for five months from the local rent-all store.Remmie's possession of the scaffolding during the five-month period will be subject to any limitations contained in the lease agreement for the bailed property.

Correct Answer
verified

The requirement that a business offering bailment for value appropriately store perishable items placed in its possession is reflective of which of the following?

Correct Answer
verified

A warehouseman's general responsibility toward its customers' property is to treat it as a skilled storekeeper would deal with its own property,which imposes a standard of reasonableness encompassing responsibility for most foreseeable risks.

Correct Answer
verified

What is the named used to describe the individual who has the right to enforce a lien over property until such time as storage fees have been paid?

Correct Answer
verified

Exam 17: Personal Property

The burden placed on a common carrier to care for the goods of the bailor is determined by the concept of benefit of the relationship.If the bailment benefits the bailor exclusively,the common carrier is required to exercise slight care and is liable only for gross neglect.

Correct AnswerverifiedShow Answer

As security for its operating line of credit,EcoDesign Builders Inc.has given an assignment of rents for two of its apartment blocks to ImaBigBank.Why is the bank's registration of the assignment of rents considered economical?

Correct AnswerverifiedShow Answer

Identify the elements that are applied to determine the liability of bailees.

Correct AnswerverifiedFollowing are the elements that are appl...View AnswerShow Answer

In law,intellectual types of property are known as choses in action.

Correct AnswerverifiedShow Answer

The value of the consideration paid to keep a costly but very adequate policy in good standing will most likely provide strong support for which of the following?

Correct AnswerverifiedShow Answer

Which of the following denotes the most common cause for a bailor incurring liability with respect to goods provided under a contractual bailment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following distinguishes a commercial bailment contract from a consumer bailment contract?

Correct AnswerverifiedShow Answer

Marcella delivered her suits to the drycleaners and arranged for them to be available for pick-up three days later.In this bailment for value,Marcella is a bailor and the drycleaner is a bailee.

Correct AnswerverifiedShow Answer

Ross sold his house and went travelling for two months.While he was away,he placed his furniture and other belongings in storage with Kitt's Storage Inc.In these circumstances,Ross is a bailee and Kitt's is a bailor.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A higher expectation placed on a business offering a specific type of bailment is typically reflective of which of the following?

Correct AnswerverifiedShow Answer

What is it that most often drives the decision to create a temporary split of ownership and possession with respect to personal property?

Correct AnswerverifiedShow Answer

Which of the following is a valid criticism of a three-party financing lease arrangement?

Correct AnswerverifiedShow Answer

When a business entrusts bailed goods to an employee,which of the following is the most relevant factor flowing from the pilfering of those goods by that employee?

Correct AnswerverifiedShow Answer

Intangible property is comprised of personal property,the value of which come from its physical form.

Correct AnswerverifiedShow Answer

Remmie has leased scaffolding,to be used in his home stuccoing business,for five months from the local rent-all store.Remmie's possession of the scaffolding during the five-month period will be subject to any limitations contained in the lease agreement for the bailed property.

Correct AnswerverifiedShow Answer

The requirement that a business offering bailment for value appropriately store perishable items placed in its possession is reflective of which of the following?

Correct AnswerverifiedShow Answer

A warehouseman's general responsibility toward its customers' property is to treat it as a skilled storekeeper would deal with its own property,which imposes a standard of reasonableness encompassing responsibility for most foreseeable risks.

Correct AnswerverifiedShow Answer

What is the named used to describe the individual who has the right to enforce a lien over property until such time as storage fees have been paid?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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verified
Following are the elements that are appl...
View Answer

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